Running a company in Bulgaria involves more than the initial registration. Once the company is established, the management must comply with several ongoing legal, tax, and accounting annual obligations. These requirements ensure transparency, proper taxation, and compliance with Bulgarian commercial and accounting legislation.
Understanding the main annual obligations is particularly important for foreign entrepreneurs who operate companies in Bulgaria or manage their business remotely. Below is a practical overview of the key annual compliance requirements for Bulgarian companies.
Preparation of Annual Financial Statements
Every Bulgarian company must prepare annual financial statements for each financial year. The financial year usually corresponds to the calendar year and ends on 31 December.
The annual financial statements typically include:
- Balance sheet
- Profit and loss statement
Depending on the size of the company and its activity, additional documents may also be required, such as a management report or an independent audit report. Medium-sized and large enterprises are subject to a mandatory independent financial audit.
The financial statements are prepared under the Bulgarian Accountancy Act and applicable accounting standards.
Publication of financial statements in the Commercial Register
Once the financial statements are prepared and approved by the shareholders or the sole owner of the capital, they must be published in the Bulgarian Commercial Register.
For companies registered under the Commercial Act, the annual financial statements must be submitted for publication by 30 September of the year following the reporting period.
For example: Financial statements for the 2025 financial year must be published by 30 September 2026.
Failure to publish the annual financial statements within the statutory deadline may result in financial penalties for both the company and its legal representatives.
Corporate Income Tax Return
Bulgarian companies must also submit an annual corporate income tax return to the National Revenue Agency (NRA).
The tax return reports the company’s taxable profit and the corporate tax due for the previous year. Bulgaria applies a 10% corporate income tax, one of the lowest rates within the European Union.
The corporate tax return must generally be submitted by 30 June of the year following the reporting period,and any tax due must be paid within the same deadline.
The tax result may differ from the accounting profit due to tax adjustments provided in the Corporate Income Tax Act.
Statistical reporting to the National Statistical Institute
Many companies are required to submit statistical reports to the National Statistical Institute (NSI). These reports provide economic and financial information used for national statistics.
In most cases, the statistical reports related to the previous financial year must be submitted by 30 June.
The exact reporting requirements depend on the size of the company, the sector in which it operates, and the type of activity performed during the reporting period.
VAT and ongoing tax reporting
If the company is registered for Value Added Tax (VAT), it must submit periodic VAT declarations.
These obligations usually include:
- Monthly VAT returns
- VIES declarations for intra-EU transactions
- Intrastat declarations in certain cases
These filings are submitted electronically to the NRA and must be completed within the statutory deadlines each month.
Companies without business activity
Even companies that have not carried out business activity during a given year have reporting obligations.
Instead of preparing and publishing full financial statements, companies without activity may submit a declaration of inactivity under the Accountancy Act.
This declaration must usually be filed with the Commercial Register by 30 June of the following year.
Once such a declaration has been submitted for the first inactive year, it generally applies for subsequent years until the company resumes activity.
Labor and social security obligations (if the company has employees)
If the company employs staff, it must comply with ongoing payroll and social security reporting requirements in Bulgaria. This includes monthly submission of payroll data and declarations to the National Revenue Agency of Bulgaria, as well as timely payment of social security and health insurance contributions. Employers are also responsible for withholding and declaring personal income tax on salaries. At the end of the year, the company must issue annual income statements to employees and submit the relevant annual reports. Proper handling of these obligations is important, as delays or errors can lead to penalties.
Maintaining accounting records and company documentation
Bulgarian companies must also keep proper accounting records and maintain their documentation in accordance with the Accountancy Act.
Accounting documents, financial reports, and related records must generally be preserved for a minimum period of ten years, while certain employment-related documents must be retained for longer periods.
Maintaining accurate documentation is essential for tax inspections, audits, and regulatory compliance.
Maintaining company records and registered address
Every Bulgarian company must maintain accurate, up-to-date information on its registered address and official records. The registered address must be valid and accessible, as it is used for official correspondence and notifications. Any changes in company details, such as management, shareholders, or address, must be duly filed with the Bulgarian Commercial Register within the applicable deadlines. In addition, companies are required to store accounting and commercial documents for statutory retention periods under Bulgarian law. Keeping records properly organised is not only a legal requirement but also essential in case of inspections or audits.
Why annual compliance matters
Annual reporting obligations are not merely administrative formalities. They play an important role in ensuring financial transparency and legal certainty in business relations.
Companies that comply with these obligations maintain good standing with the Bulgarian authorities and reduce the risk of administrative penalties, inspections, or difficulties in future corporate transactions.
For many entrepreneurs, especially foreign company owners, working with a qualified accountant and legal advisor helps ensure that all annual obligations are properly fulfilled.
Other compliance requirements
Depending on the company’s activities, additional compliance obligations may apply. Certain businesses fall within the scope of anti-money laundering regulations and must implement internal rules and procedures in line with Bulgarian AML legislation. Others may require specific licenses, registrations, or ongoing supervision by competent authorities, depending on the sector.
Conclusion
Bulgaria offers a relatively straightforward business environment, but companies must still comply with several annual accounting and reporting requirements.
Preparing annual financial statements, filing corporate tax returns, publishing reports in the Commercial Register, and meeting statistical reporting obligations are essential parts of maintaining a company in good legal standing.
Careful planning and professional support can make these procedures manageable and allow business owners to focus on their core activities while remaining fully compliant with Bulgarian legislation.